CENTURY ENKA 2023-24 Annual Report Analysis

Mon, 12 Aug

CENTURY ENKA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

CENTURY ENKA Income Statement Analysis

• Operating income during the year fell 15.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.6% in FY24 as against 6.9% in FY23.
• Depreciation charges increased by 21.9% and finance costs increased by 127.7% YoY, respectively.
• Other income grew by 75.9% YoY.
• Net profit for the year declined by 52.7% YoY.
• Net profit margins during the year declined from 4.4% in FY23 to 2.5% in FY24.

CENTURY ENKA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,721	17,442	-15.8%
Other income	Rs m	190	335	75.9%
Total Revenues	Rs m	20,911	17,776	-15.0%
Gross profit	Rs m	1,422	797	-44.0%
Depreciation	Rs m	412	503	21.9%
Interest	Rs m	24	54	127.7%
Profit before tax	Rs m	1,177	575	-51.1%
Tax	Rs m	274	148	-46.0%
Profit after tax	Rs m	903	428	-52.7%
Gross profit margin	%	6.9	4.6
Effective tax rate	%	23.2	25.7
Net profit margin	%	4.4	2.5

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CENTURY ENKA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 15.2%.
• Long-term debt down at Rs 338 million as compared to Rs 487 million during FY23, a fall of 30.6%.
• Current assets fell 3% and stood at Rs 8 billion, while fixed assets rose 11% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 4%.

CENTURY ENKA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,217	13,644	3.2
Current Liabilities	Rs m	1,511	1,740	15.2
Long-term Debt	Rs m	487	338	-30.6
Total Liabilities	Rs m	16,226	16,843	3.8
Current assets	Rs m	8,204	7,946	-3.1
Fixed Assets	Rs m	8,022	8,897	10.9
Total Assets	Rs m	16,226	16,843	3.8

CENTURY ENKA Cash Flow Statement Analysis

• CENTURY ENKA's cash flow from operating activities (CFO) during FY24 stood at Rs 881 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -470 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -429 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -18 million from the Rs -29 million net cash flows seen during FY23.

CENTURY ENKA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	2,193	881	-59.8%
Cash Flow from Investing Activities	Rs m	-2,513	-470	-
Cash Flow from Financing Activities	Rs m	292	-429	-
Net Cash Flow	Rs m	-29	-18	-

Current Valuations for CENTURY ENKA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.6, an decline from the EPS of Rs 41.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 793.2, stands at 30.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	948.3	798.2
TTM Earnings per share	Rs	41.3	19.6
Diluted earnings per share	Rs	41.3	19.6
Price to Cash Flow	x	5.7	10.0
TTM P/E ratio	x	8.3	30.7
Price / Book Value ratio	x	0.8	0.7
Market Cap	Rs m	11,056	9,303
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for CENTURY ENKA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.6x during FY24, from 5.4x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 11.8x during FY24, from 51.1x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 3.1% during FY24, from 6.8% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 4.5% during FY24, from 8.8% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 2.9% during FY24, from 5.7% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	5.4	4.6
Debtors’ Days	Days	382	412
Interest coverage	x	51.1	11.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	2.9
Return on equity	%	6.8	3.1
Return on capital employed	%	8.8	4.5

To see how CENTURY ENKA has performed over the last 5 years, please visit here.

CENTURY ENKA Share Price Performance

Over the last one year, CENTURY ENKA share price has moved up from Rs 423.5 to Rs 793.2, registering a gain of Rs 369.7 or around 87.3%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

(To know more, check out historical annual results for CENTURY ENKA and quarterly results for CENTURY ENKA)